“Why didn’t parents SAVE for their children’s education?”
I’m not going to criticize anybody who actually saves for something they want or need - clearly that mindset is something this country needs to relearn.
But it’s not unusual for colleges to exploit people with that mindset. At many of the better private colleges, almost no one (except for the genuinely wealthy) pays the “sticker price” - most students get some degree of financial aid. And unless that financial aid is “merit based”, the amount of financial aid is determined by a complex formula that takes into account the family’s income and assets.
That approach generally punishes middle class families that actually save for college - the more you save, the more you get bonged on any “need based” discounts you might have qualified for.
One caveat - those policies vary from school to school - but as a general proposition, financial aid policies at most schools are designed to actually punish responsible families.
So, it’s very simple. If you can’t afford that private college, don’t allow your child to attend that private college.
Now, I agree about the “punishing” part. As a responsible family with one child, the high school guidance department had meeting after meeting regarding financial aid. From the paperwork, we knew we would not be eligible. But, that’s not the point. My child could also not afford one of those “better private colleges”, so guess what? We didn’t even look at them. We looked at the schools we could afford and the schools with the curriculum we thought would match his goals. What a ridiculous strategy, huh?
What we SHOULD have done, the new American way, was to send him to the most expensive school in the country and then write the President a letter complaining that his entry level job won’t cover his student loans.
“... as a general proposition, financial aid policies at most schools are designed to actually punish responsible families.”
This is so true. Universities, whether private or public, have a voracious appetite for every penny you have, yet have no accountability for actually educating your child.
I am paying two kids tuition at the moment.
My sons university (public, local) announced plans to raise tuition nearly 10% last year. I complained - for all the obvious reasons. I got their budget, and I eventually met with the CFO.
He told me “Kids ‘demand’ the amenities” His biggest issue was another public university that stressed amenities over education - he literally stated “They are kicking our butt”
He indicated that they were sliding down SAT scores to get more students.
He blamed increasing tuition on state funding cutbacks - but I pointed out no obvious efforts to cut back on costs, regardless of funding sources. He accepts that regardless, state funding will not meaningfully rise in the future.
He indicated that he was going to be ‘forced’ to increasingly use Adjunct Professors rather than tenured/benefit consuming professors
I pointed out that “public private partnerships” for dorms were long-term drains on finances - and that I knew he was never going to repay them. I pointed out that administrative costs were not being controlled (He disagreed).
The interesting thing about looking at University budgets is that in reality all the money goes into one pot - Room, Board, Fees, Tuition....it’s a game to simply extract money from students and call it whatever necessary to get the money out of them.
This CFO realizes that he will not be able to raise tuition over a sustained period of time.
The bottom line: If you don’t want to drop your pants and show greedy university staff every asset and income source you have and have them punish you for being even semi-successful, (Look at the FAFSA form!) then you have to go it alone, like me and pay for your kids education - or let them slit their own throats and become a debt slave through student loans.
Acquiring student loan debt is the easiest path - deliberately so. It is the only way universities get to live to the next day. For how long can it continue? who knows...but not much longer according to one CFO.